Regulating Competition in the Interexchange Telecommunications Market: The Dominant/Nondominant Carrier Approach and the Evolution of Forbearance

Although significant competition began to develop in the interexchange market during the mid-twentieth century, the Federal Communications Commission did not undertake a meaningful effort to regulate competitive forces until it commenced its Competitive Carrier rulemaking in 1979. This proceeding, which adopted a market power approach to rate, tariff, and facilities regulation in order to enhance competition, service diversity, and consumer welfare, constituted a fundamental change in the Commission\u27s monopoly-based regulatory approach to telecommunications. The author examines the market power approach to the regulation of competition in the interexchange telecommunications market recently adopted by the FCC, with an emphasis on the arduous administrative, judicial, and legislative course taken to develop and implement forbearance as the primary regulatory policy